NVIDIA continues to take graphics market share from AMD, Intel

John Peddie Research's new graphics market share numbers are out for the …

John Peddie Research's new graphics market share numbers are out for the second quarter of 2007, and they contain more good news for NVIDIA and more bad news for AMD and Intel. In a nutshell, NVIDIA's market share took another jump this past quarter from the first quarter of the year, while AMD's market share continued its steady decline. Intel took a small dip versus last quarter, but nothing major.

Ultimately, when you step back and look at the past four quarters of JPR's market share numbers for the three major graphics companies, a clear pattern emerges. NVIDIA is taking market share mostly from AMD/ATI, but also from Intel. With 19.5 percent of the graphics market, AMD/ATI is now almost exactly where NVIDIA was one year ago at the bottom of the pack, while NVIDIA has moved up into second place to breathe down Intel's neck. For Intel's part, the world's largest graphics chip supplier is down almost three points from a year ago.

Source: John Peddie Research

NVIDIA's gains have come in both the discrete graphics and desktop chipset markets, with total desktop market making up the bulk of the good news for the company. Indeed, NVIDIA delivered only a bit late and in spades with the G80 family, while AMD/ATI's R600 part stumbled out of gate to lackluster reviews after a hefty delay. This has left NVIDIA at the top of the desktop graphics heap, and the company's stock price has responded positively to growth in revenues and margins over the past year.

The JPR report provides what is probably a preview to NVIDIA's forthcoming Q2 earnings conference call. Having had such a leap in sales this past quarter, the company will no doubt have plenty of good news for analysts and investors next Wednesday.

Intel still dominates the mobile graphics market, a market that continues to grow as more and more consumers pick laptops over desktops.

For those of you interested in the actual market share numbers from JPR, here's the chart behind the graph above: